Medical Groups Sue California
Posted on: Tuesday, 6 May 2008, 21:00 CDT
By Melissa Evans
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A consortium of health care advocacy groups filed a class-action lawsuit Monday against the state of California, hoping to block a historic
10 percent across-the-board cut in Medi-Cal and Denti-Cal payments scheduled to take effect July 1.
The groups - including the California Medical Association, the California Hospital Association and the California Dental Association - contend that lawmakers overstepped their constitutional authority, and that the cuts would violate the state's obligation to ensure that Medi-Cal patients have the same access to health care as the general public.
"Medi-Cal already doesn't cover the cost of providing care," said Richard Frankenstein, president of the California Medical Association. "If these cuts take effect, Medi-Cal patients will be forced to seek care in already overcrowded hospital emergency rooms, which undermines access to care for all Californians."
At an annual cost of $38 billion, Medi-Cal provides insurance for about 6.7 million poor, elderly and disabled residents in California. Gov. Arnold Schwarzenegger proposed the cuts, hoping to help plug a $16billion budget deficit this fiscal year.
The state Legislature approved the reduction in February to save the state about $1.3 billion.
"The governor fully understands the devastating impact of these cuts, which is why he continues to push for comprehensive health care reform and structural budget reform," Lisa Page, a spokeswoman for Schwarzenegger, said Monday. "Together these will bring stability to Medi-Cal budgeting and ensure that the state never has to make such drastic cuts again."
The groups involved in the lawsuit say that fewer doctors are willing to accept patients with Medi-Cal, which already has one of the lowest reimbursement rates in the country. Additional cuts will mean fewer patients will have access to specialists and primary care physicians, particularly in rural regions of the state, according to the lawsuit filed in Los Angeles County Superior Court.
The lawsuit seeks an injunction to immediately halt the cuts.
Those involved say they expect a court hearing on the matter in the next four to six weeks.
melissa.evans@dailybreeze.com
The Associated Press contributed to this article.
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Source: Daily Breeze
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